Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $147.82M
• Dividend Yield: N/A
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -90.19%
• EPS Growth: 79.52%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -1.73
• Shares Outstanding: 5,199,569
• 10 Day Avg. Volume: 3,056
• 30 Day Avg. Volume: 3,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.42
• Enterprise Value/Revenue: 16.81
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: -19.02
• 1Y Price Target: $28.00
• Price Target Upside: -1.51% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $28.00 ▼(-1.51% Downside)

Vroom, Inc.'s overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. While technical indicators show some positive momentum, the negative valuation metrics and lack of profitability weigh heavily. The recent corporate event involving convertible notes is a positive strategic move, but it is not enough to offset the financial challenges.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. (VRM) is an innovative e-commerce platform dedicated to transforming the way people buy and sell used vehicles. The company operates in the automotive sector and primarily focuses on providing a seamless online car-buying experience. Vroom offers a wide selection of pre-owned vehicles, comprehensive vehicle inspection reports, and a user-friendly digital interface that allows customers to transact from the comfort of their homes. Additionally, Vroom provides financing options, warranties, and nationwide delivery services to enhance customer satisfaction.

How the Company Makes Money

Vroom, Inc. generates revenue primarily through the sale of used vehicles. The company's revenue model is centered around purchasing pre-owned cars, reconditioning them to meet its quality standards, and reselling them to consumers at a profit. Vroom also earns money from ancillary services such as vehicle financing, extended warranties, and insurance products, which are offered to customers during the purchasing process. Significant partnerships with financial institutions help facilitate these services, while strategic logistics partnerships enable efficient nationwide delivery. Vroom's earnings are influenced by market demand for used vehicles, pricing strategies, and the efficiency of its reconditioning and sales processes.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces significant financial challenges, including declining revenues, negative profitability, high leverage, and negative cash flows. The company has a TTM revenue growth rate of -50.04%, negative profit margins, and a high debt-to-equity ratio of 3.77, indicating financial instability.

Income Statement

Vroom, Inc. has been experiencing significant revenue decline, with a TTM revenue growth rate of -50.04%. The company also shows negative profitability margins, including a net profit margin of -2.27% and an EBIT margin of -1.66% in the TTM period. These figures indicate ongoing challenges in achieving profitability and sustaining revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.77 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative at -124.23%, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Vroom's cash flow statement shows negative operating cash flow and free cash flow, with a TTM free cash flow growth rate of -44.31%. The operating cash flow to net income ratio is -0.50, indicating inefficiencies in converting income into cash. However, the free cash flow to net income ratio is slightly positive at 1.02, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.89M	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	126.33M	11.61M	161.95M	244.79M	202.10M	71.55M
EBITDA	-34.37M	-43.11M	-83.61M	-307.00M	-334.99M	-188.41M
Net Income	-88.30M	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	979.75M	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	14.26M	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	573.46M	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	827.81M	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	151.94M	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	-106.24M	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	-103.68M	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	-8.57M	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	-11.49M	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWH	59 Neutral	$1.68B	-83.76	-2.40%	3.03%	5.15%	48.98%
RDNW	56 Neutral	$170.47M	-1.49	2329.79%	―	-14.27%	67.06%
CRMT	50 Neutral	$250.58M	19.47	3.14%	―	0.79%	―
VRM	49 Neutral	$147.82M	―	-45.88%	―	-90.19%	79.52%
UXIN	42 Neutral	$723.65M	-18.75	74.03%	―	―	―
KXIN	38 Underperform	$7.78M	-0.11	―	―	-99.25%	90.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Vroom, Inc. Corporate Events

Vroom, Inc. Amends Credit Facility Agreement

On August 29, 2025, Vroom, Inc.‘s subsidiaries, United Auto Credit Corporation and United Auto Financing Trust V, amended their Warehouse Credit Facility agreement with Capital One, N.A. The amendment extended the maturity date to July 25, 2027, reduced the advance rate, and increased tangible net worth and minimum liquidity requirements, while keeping the aggregate borrowing capacity unchanged. The funding termination date is set for August 28, 2026, with potential earlier termination if certain default events occur.

Vroom, Inc. Enters Note Purchase Agreement for Growth

On August 29, 2025, Vroom, Inc. entered into a Note Purchase Agreement with Annox Capital, LLC and Robert J. Mylod, Jr., issuing $10 million in convertible notes as part of its long-term business strategy. These notes, convertible into common stock, were sold in a private placement exempt from registration under the Securities Act, reflecting strategic financial maneuvers to support Vroom’s growth and market positioning.

Vroom, Inc. Reports Q2 2025 Financial Results

On August 7, 2025, Vroom, Inc. announced its financial results for the second quarter ending June 30, 2025, highlighting a consolidated total available liquidity of $55.9 million and a net loss of $8.9 million. The company reported a decrease in net loss year-over-year, attributed to operational improvements and better loan portfolio performance at UACC. Vroom’s emergence from a Prepackaged Chapter 11 Case earlier in January 2025 led to the application of fresh-start accounting, affecting the comparability of its financial statements before and after this date.

Vroom Warrants Begin Trading on OTCQX Market

On July 7, 2025, Vroom, Inc. announced that its warrants will trade on the OTCQX® Best Market under the symbol “VRMMW”, with trading expected to commence on the same day.

Vroom, Inc. Concludes Annual Stockholders Meeting

On June 12, 2025, Vroom, Inc. held its Annual Meeting of Stockholders, where 4,643,281 shares were represented, accounting for approximately 89.93% of the company’s outstanding common stock. During the meeting, eight directors were elected for terms ending in 2026, and the appointment of RSM US LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis.